Our today's list of possibilities is longer than usual – but merely for the reason that many items on our watch list are approaching low levels that we once set. However, should we reach these price limits in the next few days we may most probably delay buying activities because reaching these prices at the same time means the confirmation of an established down trend. We keep watching the development on a daily basis still guided by prudence and keeping a low equity exposure. We admit that we recently realised some profits too early but we thus felt much more comfortable with the structure of our portfolios – and there always are plenty of opportunities to buy back. In the last few weeks until recently we saw a recovery that looks like a rally within a still ongoing bear market. Stocks are still expensive and the markets lack investors' optimism. A higher interest rate environment will make stocks even more expensive and less attractive in comparison to fixed interest investments. There are only two measures against an overvaluation – prices must correct – or companies and managers must take actions that generate added value that warrant the high price.

Good investing (and don't be surprised if you soon read or hear "Sell in May and go away"; May will be with us soon)

Andreas KaegiBPCS BUELACH PRIVATE CLIENTS SERVICES

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